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4 star

Kotak Credit Risk Fund - Direct Plan


Debt: Credit Risk

1 Lakh

Investment Grown to
₹ 1.08 Lakh

₹ 10000

Monthly SIP Grown to
₹ 1.25 Lakh

Suitability:

Credit risk funds invest mainly in corporate bonds which are below the highest rating assigned by credit rating agencies. The lower rating indicates a higher possibility of these bonds defaulting on repayment of investors' money. Therefore, these funds are the riskiest of all types of debt funds. However, they compensate for this additional risk with a higher return potential as these bonds offer better rates of interest than highest rated bonds. Moreover, investors can also benefit if the rating of these bonds is subsequently upgraded.

But like most other debt fund categories, we believe that retail investors can avoid this one as well. In our opinion, debt funds make sense for retail investors only if they are investing for 3 years or less. For that kind of investment horizon, Liquid Debt funds and Short Term debt funds are much more suitable.

Taxability of earnings:

Capital gains

  • If the mutual fund units are sold after 3 years from the date of investment, gains are taxed at the rate of 20% after providing the benefit of inflation indexation.
  • If the mutual fund units are sold within 3 years from the date of investment, entire amount of gain is added to the investors' income and taxed according to the applicable slab rate.
  • No tax is to be paid as long as you continue to hold the units.

Dividends

  • Dividends paid by the mutual fund scheme are taxed at the rate of 25% (effectively 29.12%, including surcharge and cess). This is known as Dividend Distribution Tax (DDT).Though the investor does not pay this tax directly, it is deducted from the dividend income before passing on to the investor.

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(₹)
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Trailing Returns (%)

YTD 1-Day 1-W 1-M 3-M 6-M 1-Y 3-Y 5-Y 7-Y 10-Y
Fund 3.52 -0.02 0.72 2.75 2.91 3.11 8.43 7.80 9.06 9.29 --
CCIL T Bill Liquidity Weight 2.06 0.00 0.04 0.22 0.84 1.94 3.85 4.13 4.32 4.69 --
Debt: Credit Risk -2.16 0.01 0.08 2.13 -0.39 -2.47 0.05 1.91 4.71 6.82 --
Rank within category 11 12 2 4 9 11 8 3 3 2 --
Number of funds in category 19 19 19 19 19 19 19 17 15 6 0

As on 14-Jul-2020

Peer Comparison

Fund name Rating Launch Date 1-Year Return 3-Year Return 5-Year Return Expense Ratio Assets (Cr)
Kotak Credit Risk Fund - Direct Plan  | Invest Online
4 star
Jan-13 8.43 7.80 9.06 0.76 2,004
ICICI Prudential Credit Risk Fund - Direct Plan  | Invest Now
5 star
Jan-13 10.68 8.71 9.26 0.96 6,562
HDFC Credit Risk Debt Fund - Direct Plan  | Invest Online
4 star
Mar-14 9.70 7.78 9.09 1.12 6,309
SBI Credit Risk Fund - Direct Plan  | Invest Online
4 star
Jan-13 9.39 7.47 8.67 0.91 3,895
IDFC Credit Risk Fund - Direct Plan
5 star
Mar-17 9.10 7.85 -- 0.66 829

Best & Worst Performance

Best (Period) Worst (Period)
Week 2.61 (24-Mar-2020 - 31-Mar-2020) -2.13 (22-Apr-2020 - 29-Apr-2020)
Month 3.07 (10-Jun-2020 - 10-Jul-2020) -3.50 (25-Feb-2020 - 26-Mar-2020)
Quarter 4.76 (19-Aug-2013 - 18-Nov-2013) -2.95 (20-May-2013 - 19-Aug-2013)
Year 13.59 (24-Nov-2015 - 24-Nov-2016) 5.48 (25-Sep-2017 - 25-Sep-2018)

Risk Measures (%)

Mean Std Dev Sharpe Sortino Beta Alpha
Fund 7.33 2.68 0.76 0.72 -1.79 -0.17
CCIL T Bill Liquidity Weight 4.07 0.28 -4.34 -7.86 -- --
Debt: Credit Risk 2.01 6.41 -0.07 0.13 -2.77 -6.70
Rank within category 4 5 5 5 6 6
Number of funds in category 18 18 18 18 18 18

The Risk Measures have been calculated using calendar month returns for the last three years.

As on 30-Jun-2020

Portfolio Aggregates

Fund 1Y High 1Y Low Category
Number of Securities 49 91 46 26
Modified Duration (yrs) 1.92 2.04 1.69 --
Average Maturity (yrs) 2.73 3.14 2.20 --
Yield to Maturity (%) 9.95 11.16 8.49 --

Value Research Fund Style*

Credit Rating vis-à-vis Category

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Top Holdings

Company Instrument Credit Rating 1Y Range % Assets
equal 9.23% Talwandi Sabo Power 30/07/2021 Debenture AA 3.71 - 9.11 9.09
equal 10.99% Union Bank of India 31/08/2050 Bonds A+ 0.00 - 6.97 6.97
equal 10.90% Punjab & Sind Bank 31/12/2099 Bonds A- 0.00 - 6.87 6.87
equal 8.85% Power Finance Corp. 25/05/2029 Bonds/NCDs AAA 0.00 - 6.35 6.35
down 9.25% Power Finance Corp. 25/09/2024 Non Convertible Debenture AAA 2.18 - 5.60 5.60
equal 9.90% Coastal Gujarat Power 27/08/2028 Debenture AA 2.03 - 5.09 5.09
equal 8.70% Future Lifestyle Fashion 2022 Bonds/Debentures A+ 0.00 - 4.91 4.91
equal 9.75% Uttar Pradesh Power Corporation 20/10/2021 Debenture A+ 1.76 - 4.64 4.64
equal 8.55% L&T Infrastructre Finance 29/11/2022 Non Convertible Debenture AAA 0.00 - 4.09 4.09
equal Bahadur Chand Investments 2024 Zero Coupon Bonds AA 0.00 - 3.76 3.76
new 7.25% HDFC 17/06/2030 Debenture AAA 0.00 - 3.29 3.29
equal 9.20% Union Bank of India Bonds/Debentures A+ 0.00 - 3.19 3.19
new 9.05% Reliance Industries 17/10/2028 Debenture AAA 0.00 - 2.85 2.85
equal 9.25% Reliance Jio Infocomm 16/06/2024 Debenture AAA 0.00 - 2.48 2.48
equal 8.25% Vizag General Cargo Berth 30/09/2020 Structured Obligation AA 0.00 - 2.47 2.47
equal 9.75% Uttar Pradesh Power Corporation 20/10/2020 Debenture A+ 1.33 - 2.34 2.34
equal Muthoot Finance 19/04/2023 Bonds/Debentures AA 1.52 - 2.80 2.16
equal 10.15% Uttar Pradesh Power Corporation 20/01/2022 Debenture A+ 0.80 - 2.12 2.12
down 10.25% Shriram Transport Finance 27/12/2024 Non Convertible Debenture AA+ 1.37 - 3.06 1.99
equal 8.30% REC 25/06/2029 Non Convertible Debenture AAA 0.00 - 1.34 1.34
new 8.30% Reliance Industries 2022 Debenture AAA 0.00 - 1.31 1.31
new 6.57% National Bank Agr. Rur. Devp 2027 Debenture AAA 0.00 - 1.26 1.26
equal Aashman Energy Ltd. 16/11/2027 Zero Coupon Bonds AA 0.00 - 0.63 0.63
equal Aarish Solar Power Ltd. 16/11/2027 Zero Coupon Bonds AA 0.00 - 0.63 0.63
equal Divyesh Power Ltd. 16/11/2027 Zero Coupon Bonds AA 0.00 - 0.63 0.63

up down equal Indicates an increase or decrease or no change in holding since last portfolio
new Indicates a new holding since last portfolio

As on 30-Jun-2020

*As on 31-May-2020

Fund Manager

— Deepak Agrawal since 01-Jan-2013

Education: Mr. Agrawal is Post Graduate in Commerce from Mumbai University, Chartered Accountant, Company Secretary and CFA.

Experience: He has been associated with Kotak AMC since 2000.

Funds Managed:


-0.02%

Change from previous, NAV as on 14-Jul-2020

Growth: ₹ 23.9726

Dividend Yearly: ₹ 18.0057

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Dividend Weekly: ₹ 10.4292

Dividend Quarterly: ₹ 10.3567

Dividend Monthly: ₹ 10.5187


Investment Strategy

The scheme seeks to generate income by investing in debt /and money market securities across the yield curve and predominantly in AA rated and below corporate securities.

Investment Details

Minimum Investment (₹) 5,000
Minimum Addl Investment (₹) 1,000
Minimum SIP Investment (₹) 1,000
Minimum No of Cheques 6
Minimum Withdrawal (₹) 1,000
Minimum Balance (₹) 1,000
Exit Load For units in excess of 6% of the investment,1% will be charged for redemption within 365 days

Basic Details

Fund House: Kotak Mahindra Mutual Fund
Launch Date: 01-Jan-2013
Return Since Launch: 9.27%
Benchmark: NIFTY Credit Risk Bond
Riskometer: Moderately Low
Type: Open-ended
Assets: ₹ 2,004 Cr (As on 30-Jun-2020)
Expense: 0.76% (As on 31-May-2020)
Risk Grade: Low
Return Grade: Above Average

Most Recent Dividends

Plan Record Date Dividend (₹ / Unit)  
Dividend Monthly13-Jul-20200.1610

 12-Feb-20200.1149
 13-Jan-20200.0790
 12-Dec-20190.0377
 13-Nov-20190.0817
 15-Oct-20190.0537
 14-Oct-20190.0537
 12-Sep-20190.0696
 13-Aug-20190.0704
 12-Jul-20190.0722
 12-Jun-20190.0749
 13-May-20190.0347
 12-Apr-20190.0607
 12-Mar-20190.0473
 12-Feb-20190.0371
 14-Jan-20190.0838
 12-Dec-20180.0736
 12-Nov-20180.0497
 12-Oct-20180.0361
 12-Sep-20180.0039
 13-Aug-20180.0620
 12-Jul-20180.0798
 12-Jun-20180.0128
 14-May-20180.0166
 12-Apr-20180.0733
Dividend Weekly14-Jul-20200.0838

 07-Jul-20200.0370
 25-Feb-20200.0117
 18-Feb-20200.0189
 11-Feb-20200.0551
 04-Feb-20200.0200
 28-Jan-20200.0234
 21-Jan-20200.0113
 14-Jan-20200.0112
 07-Jan-20200.0233
 31-Dec-20190.0110
 24-Dec-20190.0118
 03-Dec-20190.0121
 26-Nov-20190.0293
 19-Nov-20190.0226
 13-Nov-20190.0023
 05-Nov-20190.0256
 30-Oct-20190.0224
 23-Oct-20190.0245
 15-Oct-20190.0199
 09-Oct-20190.0175
 01-Oct-20190.0061
 17-Sep-20190.0099
 11-Sep-20190.0237
 04-Sep-20190.0114
Dividend Quarterly22-Jun-20200.1766

 20-Mar-20200.0577
 20-Dec-20190.1762
 20-Sep-20190.1870
 20-Jun-20190.1477
 20-Mar-20190.1384
 20-Dec-20180.1486
 21-Sep-20180.1194
 20-Jun-20180.0536
 20-Mar-20180.1018
 20-Dec-20170.0875
 20-Sep-20170.1303
 20-Jun-20170.1968
 20-Mar-20170.0891
 20-Dec-20160.0808

Contact Information

AMC: Kotak Mahindra Asset Management Company Ltd

Address: 27 BKC, C-27, G Block, Bandra Kurla Complex, Bandra (E) Mumbai - 400051

Phone: 022-61152100 / 1800-22-2626

Fax: 022-66384455

Email: [email protected]

Website: http://www.kotakmutual.com

Registrar & Transfer Agent: Computer Age Management Services Ltd.

Address: 7th Floor, Tower II, Rayala Towers, 158, Anna Salai, Chennai - 600002

Phone: 1800-3010-6767 / 1800-419-7676

Fax: 044-30407101

Email: [email protected]

Website: www.camsonline.com

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dateFriday, 17-Jul-2020
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